What is gap insurance? is it insurance which covers the depreciation of my vehicle ? Is it mandatory ? what are the benefits of having it ?
Total Comments: 27
Posted: Sat Jan 24, 2009 06:15 pm Post Subject:
Thats what Juanita said in the sixth post.
Well she was wrong, about NY at least...they are not required to OFFER gap insurance when a vehicle is purchased, but you CAN purchase it in NY.
STATE OF NEW YORK
INSURANCE DEPARTMENT
25 BEAVER STREET
NEW YORK, NEW YORK 10004
David A. Paterson
Governor Eric R. Dinallo
Superintendent
The Office of General Counsel issued the following opinion on March 27, 2008, representing the position of the New York State Insurance Department.
Re: Gap Waivers and Gap Insurance
Question Presented:
Where a motor vehicle is purchased in New York with the proceeds of a loan made by a bank, is the automobile dealership, insurer or creditor required to offer gap insurance or a gap waiver to its customers?
Conclusion:
No. The Insurance Law does not require that gap insurance or a gap waiver be offered to the buyer of a motor vehicle. However, a creditor under a retail instalment contract is required to offer a gap waiver to the buyer of a motor vehicle under certain circumstances pursuant to N.Y. Pers. Prop. Law § 302A(2) (McKinney 2006).
Now in this case it's called 'gap waiver' and is sold on a retail level...rather than insurance company but they have come a long way re: true gap coverage.
and from the ny dept of insurance:
Q: What is gap insurance?
A: The gap law added gap insurance as a new kind of insurance that may be written by insurers in New York (Insurance Law Section 1113(a)(26)). There are four sub-kinds of gap insurance. Two of these (called lessee/debtor gap insurance) can be bought by the lessee or debtor. One of the sub-kinds is for motor vehicles, and the other sub-kind is for other types of personal property. These policies insure the lessee or debtor for the gap amount directly and may be purchased from an authorized insurer
when a gap waiver is not offered by the lessor or creditor or if the lessee or debtor chooses not to buy the waiver.The other two sub-kinds of gap insurance (called lessor/creditor gap insurance) insure the lessor or creditor for the gap amount that the lessee or debtor would otherwise have been obligated to pay when a gap waiver has been sold to the consumer. Again, one sub-kind is for motor vehicles and the other all other types of personal property.Gap insurance and gap waivers are not the same thing as physical damage insurance. Physical damage insurance covers the ACV of an item of property. Gap insurance and gap waivers provide protection against financial loss arising out of obligations that exceed the ACV of the property.The gap law added long-needed consumer protections, expanded the authorized insurance market in New York, and legalized and regularized certain business practices of lessors and reditors. It will have significant positive impact on leasing and credit transactions for consumers and businesses.* The New York State Banking Department has moved to One State Street, New York, NY 10004-1417
Here is a link to the
LIST OF LICENSED INSURERS AUTHORIZED TO WRITE GAP INSURANCE UNDER SECTION 1113(a)(26) OF THE INSURANCE LAW Last Updated 01/13/04 NAIC
(there's like four or five pages..)
Posted: Sat Jan 24, 2009 06:23 pm Post Subject:
Thank you very much for the info. It seems like an extra step to obtain it in NY, luckily we can purchase it.
Posted: Mon Jan 26, 2009 01:46 pm Post Subject:
. It seems like an extra step to obtain it in NY, luckily we can purchase it.
yes, there seems to be three different 'kinds' of gap...
Thank you very much for the info
you are very welcome
Posted: Tue Mar 31, 2009 05:54 pm Post Subject: GAP in New York
Can a dealer make any profit from the sale of GAP in New York?
Posted: Tue Mar 31, 2009 07:04 pm Post Subject:
Yea most likely dealers will definitely make a hugh profit!
Posted: Wed Apr 01, 2009 07:49 am Post Subject:
Gap insurances are not available through the dealers in New York if the dealer isn't licensed to sell insurance in NY, instead they would offer gap waiver. I think that is what Juanita intended in her post :)
~Jeremy
Posted: Wed Apr 01, 2009 03:35 pm Post Subject:
gap insurance is just basically an insurance that fills your gap between your auto insurance limit and the loan of your car. it is mostly available when you get a new car...
Posted: Sat Jan 24, 2009 06:15 pm Post Subject:
Thats what Juanita said in the sixth post.
Well she was wrong, about NY at least...they are not required to OFFER gap insurance when a vehicle is purchased, but you CAN purchase it in NY.STATE OF NEW YORK
Now in this case it's called 'gap waiver' and is sold on a retail level...rather than insurance company but they have come a long way re: true gap coverage.INSURANCE DEPARTMENT
25 BEAVER STREET
NEW YORK, NEW YORK 10004
David A. Paterson
Governor Eric R. Dinallo
Superintendent
The Office of General Counsel issued the following opinion on March 27, 2008, representing the position of the New York State Insurance Department.
Re: Gap Waivers and Gap Insurance
Question Presented:
Where a motor vehicle is purchased in New York with the proceeds of a loan made by a bank, is the automobile dealership, insurer or creditor required to offer gap insurance or a gap waiver to its customers?
Conclusion:
No. The Insurance Law does not require that gap insurance or a gap waiver be offered to the buyer of a motor vehicle. However, a creditor under a retail instalment contract is required to offer a gap waiver to the buyer of a motor vehicle under certain circumstances pursuant to N.Y. Pers. Prop. Law § 302A(2) (McKinney 2006).
and from the ny dept of insurance:
Q: What is gap insurance?
A: The gap law added gap insurance as a new kind of insurance that may be written by insurers in New York (Insurance Law Section 1113(a)(26)). There are four sub-kinds of gap insurance. Two of these (called lessee/debtor gap insurance) can be bought by the lessee or debtor. One of the sub-kinds is for motor vehicles, and the other sub-kind is for other types of personal property. These policies insure the lessee or debtor for the gap amount directly and may be purchased from an authorized insurer
when a gap waiver is not offered by the lessor or creditor or if the lessee or debtor chooses not to buy the waiver.The other two sub-kinds of gap insurance (called lessor/creditor gap insurance) insure the lessor or creditor for the gap amount that the lessee or debtor would otherwise have been obligated to pay when a gap waiver has been sold to the consumer. Again, one sub-kind is for motor vehicles and the other all other types of personal property.Gap insurance and gap waivers are not the same thing as physical damage insurance. Physical damage insurance covers the ACV of an item of property. Gap insurance and gap waivers provide protection against financial loss arising out of obligations that exceed the ACV of the property.The gap law added long-needed consumer protections, expanded the authorized insurance market in New York, and legalized and regularized certain business practices of lessors and reditors. It will have significant positive impact on leasing and credit transactions for consumers and businesses.* The New York State Banking Department has moved to One State Street, New York, NY 10004-1417
Here is a link to the
LIST OF LICENSED INSURERS AUTHORIZED TO WRITE GAP INSURANCE UNDER SECTION 1113(a)(26) OF THE INSURANCE LAW Last Updated 01/13/04 NAIC
(there's like four or five pages..)Posted: Sat Jan 24, 2009 06:23 pm Post Subject:
Thank you very much for the info. It seems like an extra step to obtain it in NY, luckily we can purchase it.
Posted: Mon Jan 26, 2009 01:46 pm Post Subject:
. It seems like an extra step to obtain it in NY, luckily we can purchase it.
yes, there seems to be three different 'kinds' of gap...Thank you very much for the info
you are very welcomePosted: Tue Mar 31, 2009 05:54 pm Post Subject: GAP in New York
Can a dealer make any profit from the sale of GAP in New York?
Posted: Tue Mar 31, 2009 07:04 pm Post Subject:
Yea most likely dealers will definitely make a hugh profit!
Posted: Wed Apr 01, 2009 07:49 am Post Subject:
Gap insurances are not available through the dealers in New York if the dealer isn't licensed to sell insurance in NY, instead they would offer gap waiver. I think that is what Juanita intended in her post :)
~Jeremy
Posted: Wed Apr 01, 2009 03:35 pm Post Subject:
gap insurance is just basically an insurance that fills your gap between your auto insurance limit and the loan of your car. it is mostly available when you get a new car...
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